#Trump Tariff Hikes#

Trump's New Tariffs: What's Happening?
• New tariff rates: Trump has imposed tariffs ranging from 25% to 40% on 14 countries, including Japan and South Korea; a high tax of 50% will be applied to Brazil. All these tariffs will take effect as of August 1.
• Important objectives: It was carried out to balance price increases due to imports, promote domestic production, and exert diplomatic pressure on certain countries.

Economic Effects & Market Reactions
1. Exchange view
• The S&P 500 index continues to trend at record levels, supported by technology and AI stocks 
• However, there is stagnation in some sector stocks — margin pressure is particularly felt in production.
2. Prices & inflation
• Direct tariffs on imported products have caused an average increase of 3%; this has raised the prices of domestic products by approximately 2%.
• In some consumer goods, such as white goods, price increases have been observed for bananas.
3. Macroeconomic indicators
• According to UBS forecasts, this pressure on consumer prices could result in a decrease of approximately 0.7 points in GDP within a year.
• According to the Penn Wharton model, a decrease of approximately 6% in GDP and about 5% in wages may occur in the long term.

Risks & Political Messages
• Is TACO ( Calling for Tariffs? The criticism of ) is on the agenda: Trump's "90 deals in 90 days" plan has still fallen short, with only two mini agreements ( being signed with the United Kingdom and Vietnam.
Analysts indicate that there is significant uncertainty affecting the interest rate decision; the Fed will observe the impact of tariffs on prices before making a decision.

Short Summary
• Market reaction is moderate, the stock market shows resistance but carries a technological advantage process.
• Reflections in consumers have begun; price increases should be closely monitored.
• The Fed's decision is coming under pressure; although the superficial effects are uncertain, the underlying macro risks are increasing.
• Geopolitical tensions are high; retaliation, pressures, and court processes are part of the process.